Closing A 3-Month Old Credit Card - Merrick Bank

[DeadlyPersona]

Hi, during my rebuilding stage of my credit, I received and accepted an offer from Merrick Bank for a credit card (unsecured $500). It included an account setup fee $75, and first year annual fee of $48 that was deducted from the $500. So, my credit limit was $377 when the card arrived without purchasing anything. However, I did not research it very well before accepting and after some time I now realize I really don't need it. Yes, they will double the limit in several months, but there are no rewards and I'll have to pay an annual fee. I have other cards that I benefit from more. Capital One QS $500, NFCU GoRewards $4900, Discover It $200 (about to graduate) NFCU nRewards $500. 

If I keep it I know it won't stay in my wallet. I don't want to put a recurring subscription on it to come out monthly, and I don't want the company to close it for "no usage".

Any thoughts?

[SedimentaryRock]

You could charge a small amount every month and pay it off, or carry a $2 balance to prevent it being closed for non-activity.

[Ficoproblems247]

Does this card charge monthly for the fees, or just annually? It sounds like you have absolutely no use for this card, and it is borderline preditory in nature. I would kick it to the curb. Most would say it's in your best interest to keep the card for a minimum of 13 months, just to show that it doesn't look like you are a potential churner to any other lenders. This is probably wise, but if you're being charged monthly, it may not be worth it. If not, make sure you research to see when the latest you can close it to avoid the next annual fee is. The closed card will remain on your reports for 10 years or longer generally, and continue to contribute to your account age. It sounds like you already have 4 other (MUCH better) revolvers, so it's time to let the rebuilder go as soon as you can. 

[DeadlyPersona]

Thanks for the reply. It only charges annually there are no monthly fees (unless I pay late of course). I received the card March 2020 however, on the first statement for the annual fee: January 2020-December 2020. The annual fee will then go up to $99 beginning 2021.

[Red1Blue]

Looks like you already paid your first year AF. You also took new account ding and hard inq ding. Why cancel now?  I would say keep the card until the AF due and then cancel the card. It will help you with credit report.

[Ficoproblems247]

I agree with @Red1Blue. Keep the card through 2020 and get your moneys worth for having the open account through the time you've already paid for, but I say for sure ditch it before that next hundred bucks hits. You already have enough other revolvers without it to fuel your rebuild just fine. 

[CH-7-Mission-Accomplished]

Just dump it and kick it to the curb.   As soon as you have three non-predatory cards,  close the predatory ones.   You will eventually be embarassed to see it on your CR as you continue to better and better cards, so the sooner you close it, the sooner that 10 year delete date will happen.

Honestly, dump it.

[rckstrscott]

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@CH-7-Mission-Accomplished wrote:

Just dump it and kick it to the curb.   As soon as you have three non-predatory cards,  close the predatory ones.   You will eventually be embarassed to see it on your CR as you continue to better and better cards, so the sooner you close it, the sooner that 10 year delete date will happen.

Honestly, dump it.

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It's funny you say that because that is exactly how I felt with Credit One - I had a Citi card, a Discover and Cap1 and I would look at my report and think, ughhhhhhhhh WHY CREDIT ONE!! ha So I closed it immediately even though I ate about 9 months of the annual fee...

-scott